Too difficult, costly, or unnecessary: these may be the reasons why you avoid ERP CRM integration systems. In reality, these arguments fall flat once you realize the benefits of connecting your company and customer relations platforms. Bottom line: CRM and ERP integration will dramatically increase the value of each piece of software, providing you with the data you need to grow revenue and improve your company’s productivity across the shop floor and in customer relations.
Introduction
ERP CRM integration are two popular software tools enterprises use to manage operations and customer relationships, respectively. An ERP program controls all of an organization’s primary business activities, giving a single picture of the organization’s data and processes, resulting in more efficient operations and better decision-making.
In contrast, a CRM solution manages customer interactions and connections. This includes features like sales automation, marketing automation, customer service, and analytics. The purpose of a CRM system is to give organizations a 360° perspective of their consumers, allowing them to better understand and respond to their demands.
While each of these technologies has distinct advantages, combining ERP and CRM can deliver even more significant benefits. As the industry becomes increasingly competitive, integration and automation will become critical foundations of organizational success.
According to Gartner, by 2025, approximately 70% of enterprises will use structured automation to increase flexibility and productivity. To remain competitive, companies will have to prioritize the integration of essential software systems such as ERP and CRM.
The Benefits of CRM ERP Integration
Unified Data
This may be the most prominent and frequently spoken aspect of ERP CRM integration, but the value of unified data cannot be understated in your business. With one connected system, all members of your firm may enter data at a single entry point that can be accessed from any staff device, avoiding the inconvenience of double entries and the time required to filter through and delete them.
Client contact information can be saved in a single database and used on the ERP side for shipping and other production operations before being redeployed on the CRM side for lead contact information, customer service, and support. Instead of maintaining two databases, you will have one enormous pool from which both systems may draw, reducing your selling timeline and providing an efficient selling procedure that will wow clients.
Streamlined Information Access
Not only would linking the two systems decrease the possibility of double entries in your systems, but it will also improve information availability throughout your firm. Salespeople will not have to interrupt client meetings to request inventory checks or order history. On the other hand, you will always know how much inventory you need to keep for future orders and leads that have been identified in the CRM.
With all historical information recorded in one location, it is much easier to develop a clear business plan for the future.
Lead Conversion
Tracking and nurturing leads registered in your CRM software allows you to convert them directly to the ERP system when they want to open a physical order, eliminating the need for a clumsy transfer between sales and manufacturing teams. Each step in your process will be automated, with the completion of one stage automatically triggering the next within your software, regardless of the technology used.
While out of the office, salespeople can order directly and remotely from your warehouse using the ERP system, saving everyone from having to send and receive emails back and forth. Meetings and demonstrations run considerably more smoothly when every employee is prepared and understands the client’s objectives and whether your organization can accomplish them efficiently. Customer satisfaction leads to referrals, which are invaluable for your future success.
Access to Marketing Data
By integrating your ERP software with a marketing automation system such as Marketo, your marketing team will receive access to one of your company’s most valuable prospects: repeat customers. Your ERP may save all of your completed sales data, allowing you to contact former clients while already understanding their sales patterns and the overall life cycle of the products you’ve sold them in the past.
CRM and ERP integration will foster a seamless connection between your manufacturing, sales, and customer relations teams. This will ultimately speed up every process within your company and allow each employee to focus on what they were trained to do rather than fielding calls and emails from coworkers requesting information or entering corrections.
Customer Experience
ERP CRM integration enables firms to acquire a 360° perspective of their consumers. Businesses with a comprehensive perspective of customers’ interactions, purchases, preferences, and needs can deliver more tailored and focused marketing, sales, and customer support.
Ready access to the entire spectrum of client data enables businesses to respond faster to customer inquiries, orders, and complaints, resulting in a better customer experience and enhanced customer loyalty.
Key Considerations for ERP CRM Integrations
CRM ERP integration software manages some of the most vital corporate data and information; therefore, creating integration between the two apps necessitates careful evaluation of the best strategy and tools.
Legacy Data
Current data is one of the most challenging aspects of ERP and CRM integration. Both platforms offer vital data to help you understand customer behavior and business operations. However, data within applications is frequently saved in a variety of formats, structures, and data types.
Mapping data from one system to another can be problematic because the data models may be incompatible. Thus, integrating data from different platforms can be a massive issue for businesses, necessitating extensive preparation and coordination.
Complex Integration
Because of the complexity of linking two independent applications that were not designed to operate together, developing an ERP and CRM connection from scratch takes significant time and resources. The fundamental issue in creating an integration from the start is the requirement for a thorough understanding of both systems, their data structures, and underlying business processes.
ERP and CRM systems are sophisticated and highly customizable software with several data models, business rules, and workflows that must be integrated.
Slow User Adoption
Deploying a new ERP and CRM integration presents the problem of a learning curve and major changes in how staff work, which can be challenging to adapt to. Employees must be trained to utilize the software efficiently as their workflow changes due to the ERP and CRM integration. Furthermore, aversion to change is a primary barrier to user adoption.
Employees may resist utilizing the new software since they are accustomed to the old system and do not want to learn something new. This can be especially difficult for senior staff who may be less conversant with technology.
High Cost
Implementing ERP and CRM integration can be costly, particularly for smaller firms. The cost of implementation covers a variety of integration-related factors, including hardware and software prices, the cost of employing an expert to build the integration, customization and configuration fees, and the possible cost of downtime or data loss.
These expenses can be substantial, especially for large companies with extensive IT infrastructures.
Best Practices for a Successful ERP CRM Integration
Migrate from Obsolete Legacy Systems
Enterprises have used ERP CRM technologies for many years. These systems have sophisticated functionalities and store significant amounts of data in their databases. Older businesses that adopted these technologies continue to rely on legacy systems to maintain their operations.
However, these legacy systems are quickly becoming obsolete, and even pioneering ERP software like SAP ERP will be superseded by newer technologies like SAP S/4HANA by 2027.
Use API Integration
When designing an integration, you have two alternatives for connecting the systems: (P2P) Point-to-Point connectors or APIs. Previously, P2P connectors dominated the integration industry, but they had to be custom-built for each platform and redone whenever the underlying technology changed.
APIs provide smooth integration even when the underlying programs are upgraded or modified because they are built on a predetermined framework.
Enable Data Standardization
Data standardization is critical for integrating an ERP and CRM application since it ensures that the data moved between these systems is consistent, accurate, and valuable. Without standardization, data might be entered in diverse formats, resulting in errors, inconsistencies, and inefficiencies in corporate processes.
When two systems share the same data formats and structures, data may be exchanged more easily and consistently. This provides smooth integration and collaboration among the many applications.
Use Low-code BPA Platform
Implementing the integration using a low-code Business Process Automation (BPA) platform, such as APPSeCONNECT, can help accelerate system integration by providing pre-built interfaces and APIs. Organizations can save money on integration by removing the need for specialist development personnel and shortening the time to complete integration initiatives.
Furthermore, the platform enables enterprises to respond fast to changing business requirements and increase efficiency with pre-built connectors and automation, reducing time to market.
Conclusion
In this digital age, organizations cannot afford to overlook the increased visibility, efficiency, and agility that CRM-ERP integration provides. Remember that your CRM and ERP are more than simply tools; they are the gears that propel your business forward. Integrating them assures that you are not only moving but accelerating toward your company objectives.
